Fox Corporation: Where the stream flows; Fox announces acquisition of Roku

Research evidence excerpt

Fox Corporation: Where the stream flows; Fox announces acquisition of Roku

ox One, did not have a DTC streaming service to bring their Date Established 11-May-2026 / 11-May-2026

most premium content to DTC (although Tubi has been a success in AVOD). We view the Investment Opinion B-3-7 / B-3-7

acquisition of Roku as a meaningful strategic shift which significantly remixes their 52-Week Range 53.04 USD - 76.39 USD

business toward the faster growing direct to consumer and connected TV segments and Market Value (mn) 25,025 USD

alleviates some of the broader questions around trajectory of the business longer term. Free Float 89.0%

Average Daily Value 159.91 USD

Revenue and cost synergy opportunity appears significant Shares Outstanding (mn) 457.0 / 457.0

Fox is targeting $400mn in cost synergies which we view to be conservative. These BofA Ticker / Exchange FOXA / NAS

include elimination of duplicative corporate overhead costs, vendor relationship and BofA Ticker / Exchange FOX / NAS

advertising sales consolidations among other areas. More interesting to us is the longer- Bloomberg / Reuters FOXA US / FOXA.OQ

term revenue synergy opportunity which is not contemplated in Fox’s pro forma targets. ROE (2026E) 17.1%

Fox has a strong track record as operators, and the performance of Tubi under their Net Dbt to Eqty (Jun- 9.8%

ownership provides a good proof point on their ability to drive value. As an example, when 2025A)

Fox had the Super Bowl, they were able to cross-sell advertising sales to Tubi as well,

meaningfully accelerating their growth. Extrapolating out this potential across all of Fox’s

premium content offerings (between both sports and news) presents a compelling

opportunity for an asset such as Roku which still remains under monetized.